Despite weaker incomes, most of the 246 bank respondents reported strong loan portfolios in the second quarter. Most banks had few nonperforming farm loans, and those with delinquencies felt that most repayment issues could be managed without major loan restructuring or forced sale of assets.

Tenth District farmland values rose further, although the pace of gain slowed. Compared to first quarter gains, District cropland values rose moderately and remained 20% above year-ago levels. Looking ahead, the majority of bankers felt that farmland values would hold at current levels for the rest of the growing season.